(KLZA)-- The Falls City Council approved an ordinance Monday night to aid Community Medical Center in refinancing about $16-million in bonds on the new hospital.
Hospital CEO Ryan Larsen told the Council that in six years the hospital has paid the bonds down from $18-million to $16-million. Refinancing is expected to cut the interest rate in about half and save a projected $8-million. The savings would then be used to help the hospital expand service and facilities.
The re-issued bonds would be paid off in 15 years.
Mike Rogers, Bond Council with Gilmore and Bell who is working with the hospital explains anytime tax exempt financing is done with a 501C3 entity, in order for the interest to be tax exempt, it needs to be done by a governmental entity.
Rogers reiterated that there is no financial risk to the City.
American National Bank of Omaha will do the financing.
The bank can only look to the hospital for repayment. The cities taxing power and credit are at no risk. The City only serves as the issuer of the financing to designate the bonds as bank qualified which creates an even lower interest rate for the hospital.
The Council voted to waive the three reading rule and passed the ordinance on final reading Monday night.
At a later point there will be a public comment period for the public to express their opinion.
© Many Signals Communications
MOST VIEWED STORIES
Meriden teen injured in Jeff co wreck
Two arrested in rural Horton drug bust
USD 415 board approves resignations, new hires
Fake sports rings seized enroute to Atchison
Early Saturday house fire battled in Atchison
Topeka woman arrested in Jackson Co on drug charges
Hearing held on USD 115 land transfer petition
4th attorney appointed for TX man charged in fatal Jackson Co wreck
Failure to stop, Georgia warrants, hold Atchison man
8-year-old injured in mid-week Atchison wreck
New Mayor appointed for Lancaster
LV man sentenced for teen sexual attack
K-9 bridge replacement underway in Nemaha County
Motorcyclist injured in Winthrop, MO crash
Lansing inmate dead, investigation continues
Hiawatha street repair project approved
LATEST STORIES
Electrical distribution project upgrades for Falls City
NPPD warns downed power lines can be deadly
MHMA Mock Trial Team wins state, heads to natls
Nebraska students taking advantage of dual credit courses
Lansing inmate dead, investigation continues
Motorcyclist injured in Winthrop, MO crash
Bird flu found in two KS dairy herds
Brown Co certifies election results
RELATED STORIES
City and County to discuss combined dispatch center
Waterfall project approved by Falls City Council
Falls City Council denies truck parking request
Falls City Council organizes for 2020
Falls City making progress on nuisance properties
Neighbors bring complaints to City Council
Falls City Council updated on park projects
CMC in Falls City to stop delivering babies